Trading Tips Blog

Shares of American Airlines (AAL) have recently slumped to a six-month low, having lost nearly one-third of their value since July. One trader is betting on a further decline in the weeks ahead. That’s based on the October 27 $11.50 puts. With 29 days until expiration, 20,041 contracts traded compared to a prior open interest of 728, for a 28-fold rise in volume on the trade. The buyer of the puts paid $0.24 to make the bearish bet. Shares recently dropped ...
Read More

The past few weeks have seen investors sour on technology stocks. However, it’s normal in any market for a sector that’s been the runaway winner to take a breather. When that happens, other sectors tend to shine. With some fear in the markets, defensive areas such as utilities and consumer goods have been holding up. But one sector is also performing well that looks bullish for the economy next year. That is the commodity space. The headline winner has been oil prices, ...
Read More

John Rakolta, a director at Agree Realty Corporation (ADC), recently bought 30,000 shares. The buy increased his holdings by 9 percent, and came to a total cost of $1.72 million. Insiders have been active buyers over the past two years, with no insider sales during that period. Other recent buys include a 500-share pickup from the company CFO in August, for just under $31,000. And the company COO bought 1,755 shares for just under $110,000. Overall, company insiders own 1.6 percent ...
Read More

Healthcare facility real estate investment trust (REIT) Medical Properties Trust (MPW) has lost over half its value in the past year amid rising interest rates. One trader sees further downside in the weeks ahead. That’s based on the November $4 puts. With 51 days until expiration, 50,467 contracts traded compared to a prior open interest of 596, for an 85-fold rise in volume on the trade. The buyer of the puts paid $0.25 to make the bearish bet. Shares recently traded for ...
Read More

On Wall Street, traders are often attracted to “turnaround” stocks. These are companies that have fallen on hard times. But, they have a plan to right what went wrong. That sounds well, and can often attract investors in a stock that looks like a value. But not all turnaround stocks are able to turn things around. That’s why investors should wait for signs a turnaround is succeeding. It may cost some profits, but it increases the chances of keeping a profit. Regional ...
Read More

William Spencer, Co-founder and CEO of Planet Labs (PL), recently added 100,000 shares. The buy increased his holdings by 8 percent, and came to a total cost of $269,840. This is the first insider buy since April, when a division president bought 274,000 shares. A number of company insiders were massive buyers at the end of 2022. Otherwise, the company’s CFO has been a steady seller of shares each month. In total, company insiders own 2.9 percent of shares. The satellite imaging ...
Read More

Retail chain TJX Companies (TJX) is up nearly 50 percent over the past year, although the stock has come down in the past few weeks. One trader sees a strong rebound in the coming weeks. That’s based on the October $96 calls. With 24 days left until expiration, 20,393 contracts traded compared to a prior open interest of 235, for an 87-fold rise in volume on the trade. The buyer of the calls paid $0.12 to make the bullish bet. Shares recently ...
Read More

No matter how you slice it, companies need to make a profit. That means they need to make money even after all the costs of business. So when those costs rise, so do the prices consumers pay. It can also mean changing returns for investors. For instance, investors in a franchise need to have deep pockets to invest. Most franchise companies require an up-front financial commitment. Increasing those fees is a sign of higher profitability for the management company. After 30 years ...
Read More